How The Largest Credit Unions Are Leveraging AI in 2025

Credit unions have often faced challenges in keeping up with the latest technology.

But with mounting pressure from younger members and banks leading the way in AI adoption, the largest credit unions are now setting the pace for their industry.

With millions of members to serve, the biggest credit unions in the U.S. are turning to artificial intelligence (AI) to work smarter. 

Think of AI as a behind-the-scenes assistant; spotting fraud before it happens, redacting sensitive information before it reaches public AI tools, answering member questions faster, and helping loans get approved more efficiently. These tools are reshaping the way credit unions operate every day.

Of course, new technology also raises important questions. How do you keep member data safe? What happens if the system makes a mistake? The choices made by the largest credit unions today will influence how smaller credit unions approach AI tomorrow.

In this post, we’ll walk through the five largest credit unions and explore how each is starting to use AI; what’s working well, where the risks lie, and what lessons any credit union can take from their journey.

Who Are the Top 5 Largest Credit Unions in the U.S.?

Based on their total assets and membership size, these are the biggest players in the market:

1. Navy Federal Credit Union - the largest credit union in the U.S., serving over 13 million members, mostly from military and defense communities.
2. State Employees’ Credit Union (SECU) - headquartered in North Carolina, serving state and public employees with millions of members.
3. Pentagon Federal Credit Union (PenFed) - a nationwide credit union that supports military members, veterans, and their families.
4. BECU (Boeing Employees’ Credit Union) - based in Washington state, originally for Boeing employees but now open to the wider community.
5. SchoolsFirst Federal Credit Union - serving school employees and their families, primarily in California.

These five institutions are not only the largest in the United States by size but also the ones most able to test and scale new technologies like AI. Next, we’ll explore how each of them is putting AI into practice.

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Navy Federal Credit Union AI Adoption: A Leader Among the Largest Credit Unions

Navy Federal Credit Union (NFCU), the world’s largest credit union with $190B in assets and 14M members, is championing AI adoption in various processes to curb fraud, improve quality and automate repetitive tasks.

AI Use cases

1. Fraud Detection and Personalized Services:
   NFCU operates over 100 machine learning models leveraging data from 200+ enterprise sources to detect fraud, personalize member experiences, and support operational insights.
2. Process Optimization and Automation:
   The credit union employs task mining and AI-driven process mapping to optimize and automate workflows continuously, driving efficiency and innovation.
3. Workforce Management:
   AI-powered workforce management tools from partners like Verint improve staff scheduling, leave management, and member service consistency, enhancing employee and member satisfaction.
4. Real-Time Data Processing:
   NFCU’s real-time data pipelines process billions of application events monthly, enabling rapid innovation, near-instantaneous member insights, and accelerated product delivery
5. Document Processing:
   AI and robotic process automation (RPA) streamline large-scale document workflows, improving back-office accuracy and speed crucial to quality customer service.

Key Partnerships

NFCU collaborates with leading technology providers including Databricks, Verint, Pega, and Radiant Digital to power AI analytics, workforce optimization and end-to-end digital transformation.

Governance Risks

• A 2025 incident exposed 378GB of system data and hashed credentials stored in a vendor-managed AWS backup, highlighting the risks of supply chain and third-party data management; no plaintext member data was leaked.
• Ongoing litigation over AI-powered call monitoring emphasizes the importance of privacy, transparency, and member consent in AI deployments.

Wald.ai’s Recommendation

While employee management is taken care of, providing their 24,000 employee workforce with the latest GenAI tools such as ChatGPT, Gemini and more in a completely secure way can further boost productivity and decrease the chances of a data breach.

Wald.ai delivers a perimeter-first, data-centric AI security platform that isolates AI access from core systems, redacts sensitive information from prompts before reaching large language models, and enforces end-to-end encryption and policy-based controls. This can enable the largest credit unions like NFCU to innovate responsibly, ensuring compliance and member trust.

State Employees’ Credit Union AI 

AI Use Cases

1. Improving Contact Center Efficiency and Member Experience:

• Call routing wait times reduced from 300 seconds to under 60 seconds
• Achieved 94% member satisfaction and a positive net sentiment score.
• 90% of agents utilize AI self-service tools for call handling.
• Automation cut manual admin efforts by 20%. 

Agents access key member info seamlessly, improving responsiveness and call quality.

2. Fraud Detection and Risk Management:
   SECU applies AI analytics to proactively detect fraud and manage risk with compliance focus.
3. Operational Automation:
   AI streamlines loan processing, document handling, and routine inquiries, freeing staff for complex needs.

Key Partnerships

SECU’s AI transformation heavily features NiCE’s CXone Mpower platform, unifying contact center automation and workforce management at scale. Additional fintech and tech collaborations support digital innovation.

Governance Risks

SECU prioritizes data privacy, member consent, and regulatory compliance as AI expands.

Wald.ai’s Recommendation

Wald.ai can help credit unions like SECU harness AI securely by enabling agents to query and analyze large datasets safely within encrypted, access-controlled environments. This allows faster, confident decision-making without risking exposure of sensitive member data. Wald.ai’s platform isolates confidential information, enforces strict policies, and provides audit trails helping credit unions innovate responsibly while maintaining trust and compliance.

Pentagon Federal Credit Union AI Use Cases

Pentagon Federal Credit Union AI Use Cases

1. Faster Self-Service Support:
   PenFed’s AI-powered chatbots and live chat resolve 60% of member inquiries instantly, increasing digital engagement by over 200%.
2. Reduced Call Wait Times:
   Average call answer times improved by more than a minute, with agents responding within 30-45 seconds.
3. Quick Financial Aid Access:
   A loan deferment portal helped over 11,000 members obtain relief within two weeks amid financial hardship.
4. Unified Data for Personalization:
   Integrated systems create a 360-degree member profile covering 80% of activity, enabling highly personalized service.
5. Dominance of Digital Self-Service:
   95% of member interactions happen digitally, enhancing convenience and accessibility.

Key Partnerships

PenFed’s AI-driven transformation is supported by its partnerships with Salesforce and MuleSoft, which provide seamless integration of systems, AI-powered automation, and unified member experiences.

Governance Risks

PenFed closely manages AI-related risks including privacy, compliance, and ethical use, ensuring safe and trusted member interactions.

Wald.ai’s Recommendation

Wald.ai can help credit unions like PenFed securely harness AI by enabling safe, encrypted querying and analysis of large data sets. This protects sensitive data while enhancing operational efficiency and decision-making.

BECU 

AI Use Cases

1. Accelerated AI Innovation Through Acquisition
   In early 2025, BECU acquired EarnUp’s AI Advisor technology along with 13 team members, rapidly advancing its generative AI capabilities and strategy.
2. Preparing to Launch AI Advisor “Monty”
   BECU plans to deploy “Monty,” an AI assistant designed to provide personalized financial advice and enhance contact center service efficiency.
3. Democratizing Financial Access and Advice
   BECU leverages AI to offer affordable, hyper-personalized financial guidance to underserved members, improving access to financial well-being.
4. Building AI-Driven Financial Health Tools
   The credit union develops AI solutions providing real-time nudges and personalized coaching, akin to fitness tracking but for finances.

Key Partnerships

BECU partners with fintech EarnUp, integrating their AI advisor capabilities, while continuing to evolve their own AI strategy and innovation.

Governance Risks

BECU enforces board-approved policies and human-in-the-loop controls to manage AI risks and ensure ethical, compliant deployment.

Wald.ai’s Recommendation

BECU, with its strong commitment to responsible AI governance and regulatory compliance, can greatly benefit from Wald.ai’s compliance-ready architecture. Wald.ai’s detailed audit logging will provide BECU with full transparency and control over AI interactions, helping them confidently meet regulatory demands. Additionally, Wald.ai’s secure, role-based access to AI-driven insights will enhance collaboration among BECU staff, increasing productivity while safeguarding sensitive member data aligning perfectly with BECU’s focus on ethical and compliant AI adoption.

SchoolsFirst Federal Credit Union AI Use Cases

Investing in AI-Driven Organizational Platforms
SchoolsFirst deploys cloud-based and AI-driven platforms to improve operational efficiency and support ongoing growth, leveraging external vendor technology.

Applying Sector Big Data and AI Insights
The credit union utilizes big data and AI-powered modeling, mainly through sector partnerships and integrated solutions, to better understand member needs and drive service innovation.

Key Partnerships

SchoolsFirst collaborates with Black Dragon Capital to accelerate fintech innovation, digital platforms, and leverage industry-leading AI technologies for enhanced member experiences.

Governance & Risks

The credit union prioritizes regulatory compliance, privacy, and risk management, adopting best practices and sector standards in its use of AI and digital platforms.

FAQs 

1. Who is the largest credit union in California?
The largest credit union in California is SchoolsFirst Federal Credit Union, with more than 1.4 million members and over $30 billion in assets. Like other top credit unions, it is actively exploring AI-driven member services, fraud detection, and data management to enhance efficiency and compliance.

2. What are the three biggest credit unions?
The three largest U.S. credit unions by assets are Navy Federal Credit Union, State Employees’ Credit Union (SECU), and PenFed Credit Union. Each has begun integrating AI into fraud prevention, member support, and operational analytics, setting the pace for industry adoption.

3. How are the top five credit unions using AI today?
The top five credit unions; Navy Federal, SECU, PenFed, BECU, and SchoolsFirst are leveraging AI for digital member engagement, fraud detection, loan processing automation, and enterprise analytics. These deployments highlight both innovation opportunities and the need for strong AI governance.

4. Why are large credit unions adopting AI faster than smaller ones?
Larger credit unions have broader member bases, higher transaction volumes, and greater resources to invest in advanced technology. This scale makes AI adoption a strategic necessity, enabling automation, risk detection, and improved member experience while ensuring regulatory compliance.

5. What governance challenges do credit unions face with AI adoption?
Credit unions adopting AI must address governance issues such as data privacy, bias monitoring, model explainability, and vendor risk management. Regulators including the NCUA are increasingly focused on oversight, making AI governance a critical priority for large institutions.

Conclusion

At Wald.ai we’ve noticed Credit Unions moving away from Microsoft Co-pilot, Gemini and ChatGPT. With GenAI breaches and zero click vulnerabilities such as EchoLeak, leaders are turning away from AI assistants that are sitting in the middle of their mission-critical workflows. If you are analysing vendors, we recommend asking them these 6 essential questions to make sure your member data always stays secured. Responsible AI adoption is the way forward for credit unions, join us for our latest webinar focused on how your Credit Unions can move up the AI adoption curve. 

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